The African Development Bank (AfDB) approved an €83 million (approximately $100 million) loan on Wednesday to finance the second phase of Egypt’s Electricity and Green Growth Support Program (EGGSP II).
AfDB said the funding is part of its budgetary support to Egypt’s government to strengthen its electricity infrastructure, which is expected to bolster the private sector and accelerate recovery from the COVID-19 crisis.
The EGGSP seeks to enhance the power sector’s financial sustainability, governance and operations. It will also advance the provision of clean, reliable energy to drive green growth.
Egypt’s successful reforms in the sector have led to greater private investment in utility-scale renewable energy projects, according the AfDB.
“Egypt’s Vision 2030 instills the sustainability ethos across all sectors. Energy and Electricity are among the top sectors in Egypt’s international development cooperation’s portfolio, pushing towards a green reform,” said Egypt’s Minister of International Cooperation, Rania Al-Mashat.
She added that as 2021 is the year of private sector engagement, EGGSP will contribute towards sustainable growth and job creation and catalyze the development of Egyptian private entities.
Malinne Blomberg, AfDB’s deputy director general for the North Africa region highlighted that the AfDB continues to actively engage with the Egyptian government and private sector companies to support the country’s medium-term development plan and economic reforms, with a particular focus on economic infrastructure such as energy, transport, water and sanitation, as well as industrialization.
In addition to the African Development Bank, Agence Française de Développement and Japan International Cooperation Agency have also provided financial support to the EGGSP.